Counterparty Litigation: When It Signals Risk and When It Is Normal Business

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You are reviewing a potential partner and come across a list of court cases: fifteen lawsuits over the last three years. Your immediate instinct is to close the tab and look for another vendor.

Then a colleague remarks, "That's completely normal—large businesses are always in litigation." Now you hesitate in the opposite direction, wondering if it truly means nothing and whether you should simply sign the agreement as planned.

Both reactions are equally impulsive and equally dangerous. Passing on a strong partner over a single court record can cost you a lucrative deal. Conversely, ignoring dozens of repetitive claims on the assumption that "everyone does it" can prove far more expensive.

This text is being translated.

Publication date: 08/09/2026


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Edgar Simonyan

About author

Name: Edgar Simonyan

Position: Lead / Senior Attorney & Practice Development Lead

Education: Master’s Degree, East European University of Economics and Management

Knowledge of languages: Ukrainian, Russian, Armenian, English, Spanish

Email: [email protected]

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Volodymyr Gurlov
Strategic Advisor
Marina Losenko
Associate
Edgar Simonyan
Lead / Senior Attorney & Practice Development Lead